Archive for the ‘Economy’ Category

We know the stimulus is finally working and we have proof. The democrats can rejoice as Delta Air Lines is hiring 1,000 new flight attendants. The problem is that the economy is so in the tank that more than 100,000 people have applied. The thing this story which we write tongue and check that this means the stimulus was a success in case you did not pick that up. We do hope they understand that people are looking for real jobs which this President refuses to create. So when out of work her there is an opening at a real company, with a decent job, the application receiving servers cannot take it. There is something sexy to getting all that free travel and seeing the world; Europe, South America, and Asia. The reason U.S. airlines have finally returned to profitability, in part by cutting flights. Some of those flights are returning now but more importantly Delta is making an aggressive push into new, more-lucrative international routes. And that’s really where most of these 1,000 new flight attendant jobs come in. We wish luck to the 1% of the applicants that are actually picked to fly the skies on these international flights. To bad there are not more shovel ready airlines.

It is really not a surprise that the Congressional Budget Office numbers wound up a little north of congress and the president on the stimulus. The good news is the spending programs for shovel ready projects are coming to an end. The effects of the President Obama stimulus spending this past summer had a positive effect they claim as it supposedly raised the GDP, lowered unemployment, and increased the number of people with jobs. We were more impressed with the truth in the truth in the price tag. We can almost believe the first statements due to the next one. The CBO says the original price tag of $787 Billion is actually going to be higher for the 10 year period: $814 Billion spent into the economy 2009-2019. Since we have still nation wide unemployment ranging around 10% the idea was to keep it around 8% if it passed. The bottom line is we are another 814 billion in the hole over the next ten years which we will need to borrow every year just to stay ahead. This humble scriber said that we should have been giving American families a $2500 Visa card to spend on any items they wanted to grow the economy through purchases than shovel ready projects.

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Finally some good new about people getting laid off. It is mean spritied but wors is out that as many as 1,800 Democratic congressional staffers will soon lose their jobs, with layoffs hitting everyone from entry-level schedulers to six-figure committee lawyers. These layoff numbers are based on the average number of staffers per House office, as well as the Democratic committee staffing level, which will most likely be slashed in half now that Democrats will be the minority party. Most offices have to be empty by December to clear the way for the massive class of newcomers to be sworn into office in January. So it begs the question if the new congress is serious about change let us start here and agree to only hire back half of the people let go. Force the congress to run leaner just like American business have had to do since President Obama started trying to create jobs. The democrats do not get it as they sent around counselors to some Democratic offices to not only offer advice on résumés and job hunting but also help with the emotional aspect of the losses. This is a great place to start and as a show of appreciation for what Americans expected to happen we can see if it meet the new boos same as the old boss or if change in fiscal habits are going to begin.

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We have been saying that it would have been a better use of $787B and stimulate the economy faster to hand out a credit card to every citizen to buy something. We thought each American citizen could get a prepaid Visa for $4,000 and buy stuff with it excluding turning it to cash or paying bills. Our detractors said that that would not create jobs which were the goal of the Recovery Act, remember keeping unemployment under eight. We find out it is even worse than we had thought. The Los Angeles City Controller said the city’s use of its share of the $787 billion federal stimulus fund has been disappointing. The city received $111 million in stimulus under American Recovery and Reinvestment Act more than year ago. They have only created or retained 55 jobs after receiving $111 million. They are way over the target in Los Angeles as local unemployment rate over 12%. The expectation was after receiving $70.65 million; they would create and retain 238 jobs. When they received another $40.8 million they created only nine jobs in place of an expected 26 jobs. We heard the same old excuses just like when we see contracts with no show union jobs. They give us the same old song and dance lines, bureaucratic red tape, absence of competitive bidding for projects in private sectors, inappropriate tracking of stimulus money and a laxity in bringing out timely job reports. You do the math 64 jobs for $111 million in tax money wasted on bad results, from another bad plan from Washington.